Pay increases for top 1% of earners 'back in the fast lane'

By agency reporter
October 14, 2019

Pay for the top one per cent of earners has increased faster than for any other income group over the past two years, according to new TUC analysis.

The analysis shows that pay for Britain’s highest earners (those earning £63 an hour or more – or £2,300 and above for a full-time week) increased by 7.6 per cent in real terms between 2016 and 2018.

By contrast, real wage growth for the typical worker increased by just 0.1 per cent over the same period.

The TUC warned that the gap between those at the top and average workers would get worse under plans floated by Boris Johnson for tax cuts for higher earners – that would cost the Treasury around £9.6 billion a year.

The union body says no serious attempt has been made this decade to rein in excessive pay, with Theresa May rowing back on her promise to put workers on company boards.

Average pay is still worth less in real terms than before the financial crisis, with UK workers suffering the longest pay squeeze since Napoleonic times.

The TUC General Secretary, Frances O’Grady said: “While millions struggle with Britain’s cost of living crisis, pay for those at top is back in the fast lane. We need an economy that works for everyone, not just the richest one per cent.

“Boris Johnson's promised tax giveaway to high earners would only make things worse. The prime minister is focused on helping his wealthy mates and donors – not working people.”

* These figures come from TUC analysis of hourly earnings in the Office for National Statistics Annual Survey of Hours and Earnings for 2016, 2017 and 2018, avalilable here

* Trades Union Congress https://www.tuc.org.uk/

[Ekk/6]

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